The US-China war is not just about smartphones. Game consoles will be more expensive by several hundred zlotys

The situation with Huawei heralds only the beginning of a great economic war that will spill over the world. Among her victims will include players who can expect the cost of these consoles to increase in China. This applies to both the PlayStation family and Xbox machines.

PlayStation are Japanese consoles. Xboxes are American consoles. However, if we look at the actual country of origin of both products, then of course China. It is there that Sony and Microsoft platforms are assembled, which will soon be against both companies and, as a result, against us - players. Because, after all, we will be able to pass all the cost increases on the little ones.

Trump's administration plans to introduce a 25-percent customs for thousands of products from China.

The United States Trade Representative has published a proposal for a document whose provisions the Trump administration intends to implement. According to the document, a total of 25% of the goods from China will be imposed on thousands of goods. duty. The current duty, in turn, is 10 percent. It means up by 15 pp. It is a huge change that the end customer will definitely feel.

The Americans have been increasing tariffs on Chinese goods since the middle of last year. However, the new catalog of products, semi-finished products and raw materials is the most abundant. It contains several thousand items from various industries and the economy. When the document is finalized, it will be the largest commercial hit of the United States in China since the beginning of the economic conflict of both powers. If nothing extraordinary happens until June 17, 2019, the USTR proposal will get into the pressures of the legislative machinery. The project has the president's support.

Among the products with a higher duty, there are game consoles, controllers and accessories.

An increase from 10 to 25 percent. the duty will have a huge, most noticeable effect on the prices of consoles. Especially those of the new generation that will cost over $ 500. If we assume that the current market price of the console is $ 500. (the rate includes the current 10 percent duty), then after lifting the duty, the same console will already cost $ 568. Turning it into zlotys:

  • Base price: PLN 1738
  • Price with a 10% duty: PLN 1914
  • Price with a duty of 25%: PLN 2175

Between the price and the duty of 10 percent. and 25 percent there is a PLN 261 difference. At least this will cost the player a price war between the United States and the People's Republic of China. Because I do not think any of us think that console manufacturers will take additional costs on themselves? As usual, growing commitments are passed on to final customers who are always the biggest victim of politicians' actions.

"Polish is not about"? I would like to, but I doubt ...

Can you write that I need to calculate on zlotys, since the increased duty will only hit American citizens. After all, this is a conflict on the China-United States line and we have nothing to do with Europeans. The problem is that, years ago, Earth became a global village in which all continents, powers and states are connected with invisible trade threads.

If, due to the additional PS5 duty, it will cost $ 570, the European price is unlikely to remain at 500 euros. Previous practice shows that the product in the price of EUR 570 will go to stores in Berlin, Paris and Madrid. Based on this rate, its zloty equivalent will be created, in which - as it usually happens - we will be even more lossy. Ultimately, we'll get at least PLN 250 more from the portfolio. However, 300 PLN will be more realistic.

It is a black, but the most possible scenario.

Where is Nintendo in all this?

Japanese makers Mario and companies are passing the conflict on the line China - United States. The flagship product Nintendo - a portable Nintendo Switch - is produced in Taiwan. This means that the current custom rate remains in force on the handheld all the time. Of course, this does not prohibit the Japanese from raising prices on their own initiative. Seeing the situation of rivals, Wielkie N may want to increase the margin on its own products. This is an unlikely scenario.

American players may say, "It was cheaper already. - the next hit of a trade war will be aimed directly at them. The consequences of the higher tariffs, however, will spread to the entire Western world, including the Member States of the European Union. So instead of wondering "whether", we should start to think about "how much".

The US-China war is not just about smartphones. Game consoles will be more expensive by several hundred zlotys


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